Just days after the United States regulatory oversight report on Paxos and Binance USD (BUSD), cryptocurrency exchange Binance has printed nearly $50 million of TrueUSD (TUSD).
The transaction took place on February 16, according to data from Etherscan, and also happened two days after Binance CEO Chanpeng ‘CZ’ Zhao said on Spaces Twitter on February 14 that Binance would be looking to “diversify” its stablecoin holdings away from BUSD.
We live!
Tune-in to our Twitter Space AMA with @cz_binance below https://t.co/bXIztCKdry
– Binance (@binance) February 14, 2023
Despite printing nearly $50 million in TUSD from the TrustToken platform’s smart contract on February 16, CZ previously said that new regulatory actions by the United States Securities Exchange Commission (SEC) and the New York Department of Financial Services (NYDFS) are long overdue. the term could lead to the dominance of US dollar-backed stablecoins.
“I think with the current stance that regulators are taking on US Dollar-based stablecoins, the industry may move to non-US Dollar-based stablecoins, back to algorithmic stablecoins.”
“There are many agencies that are putting pressure there. It will only shrink the US Dollar-based stablecoin market,” he said.
CZ said that “this has made us look for other options in various places” and that they are currently exploring other options.
50M #TUSD printed on #Binance and the price of $ TRU an increase of 200%.
On-chain data shows that #Alameda and #justinsun are the two biggest minters of $T USD.#Alameda minted a total of 1.64B $T USD in history.#justinsun total minted 889M $T USD in history. pic.twitter.com/N1tUjFQm5U
— Lookonchain (@lookonchain) February 16, 2023
While the CEO stated that Binance will provide more support for USD Coin (USDC) and Tether (USDT) in the short term – with the hope that BUSD will “decline over time” – he added that he now wants to explore more about the Euro. and Japanese Yen-based stablecoins.
As for BUSD, CZ said that “the supply of BUSD in circulation is there and safe, and as more people want to redeem it, they will be burned.”
Interestingly, the CEO of Binance added that he was never worried about the success of the Binance-branded BUSD stablecoin:
“Honestly BUSD has never been a big business for us, when we started, I thought that the BUSD project could fail, so we didn’t have good economics in terms of the collaboration.”
Interestingly, in September, TUSD was one of the stablecoins that Binance automatically converted to BUSD to increase liquidity and capital efficiency for users. Other stablecoins that get automatically converted are USDC and USDP Stablecoin (USDP). This caused BUSD’s share of the stablecoin market to go from 10% to 15% in a matter of weeks.
related: TrueUSD and Balancer Offer TUSD Liquidity Providers and BAL Rewards from the Stablecoin Pool Incentive Program
TrustToken launched TUSD on March 5, 2018, which operates on the Ethereum, Avalanche, MATIC and Tron networks.
New TUSD are printed when buyers send USD to a third party escrow that holds USD deposits on behalf of Prime Trust. Once received, TUSD will be transferred at a 1:1 ratio to USD sent to the ERC-20 or BEP-2 wallet address nominated by the trader.